Ten $10,000, 9.5% bonds with semi-annually coupons redeemable at par on March 05, 2016, were bought on May 22, 2005, to yield 7.3% compounded semi-annually. The bonds were sold on September 20, 2010, at 101.2. Find the gain or loss on the sale of the bonds without constructing a bond schedule.
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- Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?A $23,000 bond redeemable at par on September 01, 2013 is purchased on April 17, 2002. Interest is 7.4% payable semi-annually and the yield is 7.2% compounded semi-annually. (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price? (a) The cash price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)A $15,000 bond redeemable at par on May 09, 2011 is purchased on April 14, 2001. Interest is 9.2% payable semi-annually and the yield is 8.5% compounded semi-annually. (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price?
- A$18,000 bond redeemable at par on July 09, 2013 is purchased on September 12, 2007. Interest is 7.4% payable semi-annually and the yield is 7.9% compounded semi-annually. (a) What is the cash price of the bond? (b) What is the accrued interest? (c) What is the quoted price? (a) The cash price is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The accrued interest is $. (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The quoted price is $| (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)On January 2, 2016, Concrete Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the bonds after the first interest payment is made on June 30, 2016? a. $574,540 b. $571,776 c. $568,920 d. $500,000On January 1, 2017, Ellison Co. issued eight-year bonds with a fase value of S6,000,000 and a stated interest rate of6%, payable semlannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8% Use the following to answer question 12: .627 .540 Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% .623 .534 6.210 5.747 12.561 11.652 honds issued 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.
- Shaw Company issued P5,000,000, 12% bonds on January 1, 2012. The principal of the bonds were paid in series of P1,000,000 annually, together with any accrued interest on the outstanding bonds each December 31, starting December 31, 2012. The prevailing market rate at the time of issuance was 10%. How much is the issuance price of the bonds? Using the information in Problem 4, how much is the interest payment on December 31, 2016? Using the information in Problem 4, how much is the premium amortization on December 31, 2016?Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semi-annual coupon (payable June 30 and December 31) on January 1, 2018, when the market rate of interest was 10%. Were the bonds issued at a discount or premium? Assuming the bonds sold at 92.288, what was the sales price of the bonds?A P1,000, 3%, JJ bond is redeemable at par on July 1, 2010, but may be redeemed on July 1, 2000, or on any interest payment date thereafter. (a)Find the purchase price on July 1, 1983, to yield at least 4% compounded semiannually. (b) Find the investor's profit if the bond redeemed on July 1, 2005.
- 1. On January 1, 2024, Lansing Group issued $1,000,000 of 6% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in five years. The market yield for bonds of similar risk and maturity is 8%. INSTRUCTIONS: 1. Determine the price of these bonds that are issued to yield the 8% market rate using the Time Value of Money Tables. Include the table and relevant components for each factor used. 2. Record the issuance of these bonds by Lansing Group. 3. Prepare an amortization schedule that determines interest at the effective rate through the maturity date of the bonds. 4. Prepare the entries to record the interest on June 30, 2024, and December 31, 2024. 5. Assume that Lansing Group retires the bonds on January 1, 2026, paying $1,027,544. Prepare the entry to record the retirement.On January 1, 2010, ABC Co. issued $2,000,000, 5%. 10 year bonds, interest payable on June 30th and December 31st to yield 6%. Use the following format and round to nearest dollar (may have small rounding error). The bonds were issued for $1,851,234.The balance sheet of Indian River Electronics Corporation as of December 31, 2015, included 12.25% bonds having a face amount of $90 million. The bonds had been issued in 2008 and had a remaining discount of $3 million at December 31, 2015. On January 1, 2016, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2016.